Report Title: Ascot District Day Centre– Surrenderand Renewal of Lease

Contains Confidential orExempt Information?

No

Member reporting: Councillor Johnson Leader of the Council,Lead Member Business, EconomicDevelopment & Property

Meeting and Date: 19th December 2019Responsible Officer(s): Russell O’Keefe, Executive DirectorWards affected: All

1. DETAILS OF RECOMMENDATION(S)

RECOMMENDATION: That Cabinet notes the report and:

i) Approves the Surrender and Renewal of the Lease for Ascot DayCentre for to The Ascot Day Centre Trust Ltd a term of 117 years at apeppercorn rent (“the Lease”); and

ii) Delegates authority to Executive Director of Place to agree the finaldetails of the Lease.

REPORT SUMMARY

1. The Trustee and Chair of Ascot Day Centre supported by Cllr. Bateson have approachedRBWM to enquire whether it would as Landlord effectively extend the term of the Leaseby 99 years. For the avoidance of doubt the lease will therefore be 117 years.

2. The Ascot District Day Centre Trust Ltd, has a 60 year lease wef 25th December 1977(exp 2037) at a peppercorn rent with the demise being ‘a parcel of land’ with anobligation on the tenant to build a day centre. There is a rolling break at any time onthree months’ notice. At expiration the tenant is to yield up the land and any buildings onit.

3. From RBWM’s perspective there are 18 years unexpired with no income but at expirationgets back the site plus any buildings on it.

4. Attached is a plan showing RBWM’s ownership and it will noted that the site is tight andsurrounded by other uses with a narrow shared entrance with little prospect fordevelopment potential for the foreseeable future. The area identified as LH2030 is thesubject property with the orange FH2030 being St Michaels Primary School playing fieldand LH 2029 let to the Girl Guides for 50 yrs wef 1/1/01 at a peppercorn. Access to allthree is via the orange access to the main road shared by all.

5. The proposal will ensure continuity of service to the local older population for the futureand enable the Trustees to further invest in the fabric and apparatus of the operationalrunning of the day centre.

2. REASON(S) FOR RECOMMENDATION(S) AND OPTIONS CONSIDERED

2.1 Continuity of service provision for residents within the borough. Providingessential key services for the older population.

2. DETAILS

3.1 The Ascot District Day Centre is a local charity set up in 1977 to provide daycare to the elderly of the area. The current Lease is for a term of 60 years at apeppercorn with the buildings erected being funded by voluntary donations tothe Day Centre.

3.2 Over the years the Day Centre for the elderly has grown and flourished withover 80 members. The Centre serves some 200 meals a week plus a further68 meals on wheels and organises a variety of entertainment and minibusservices on a daily basis thus providing a very valuable amenity to thecommunity.

3.3 Currently there are 60 volunteers helping provide the services and some 150benefactors who contribute to the funding of the operations on an ongoingbasis.

3.4 Ascot District Day Centre feel now is the time to seek more certainty on theirfuture position. With the high and growing number of elderly people in theBorough the need for services they provide will continue to grow.

3.5 The current strong partnership between the charity and the Borough hasprovided a mutually beneficial way to supply the services at a highly costeffective rate.

4. KEY IMPLICATIONS

4.1 There are no real downsides to RBWM. Elderly care provision continues for afurther 99 years so beneficial to the community.

4.2 The lease will be a FRI (Full Repairing & Insuring Lease), so no obligations forthe council, to repair or maintain, these are all the responsibility of the trust.

5. FINANCIAL DETAILS / VALUE FOR MONEY

5.1There is no financial change to RBWM, however the continued provision ofthis service will alleviate financial and resources pressure on the Council,whilst the trust provides this much needed service to the community.

5.2The cost of instructing and meeting legal fees for both sides will need to beborne by the Trust, so that the Council can demonstrate that it has notincurred any costs in this process.

5.3The Net Book Value of the land in the last Council asset valuation in early2019 shows the site for its existing use as de minimus.

6. LEGAL IMPLICATIONS

6.1 RBWM has the power of dispose of land in its ownership (disposal includingthe grant of a lease) under s123 of the Local Government Act 1972 providedthe land is sold at a consideration not less than the best that could reasonablybe obtained in the market.

6.2 The Secretary of State has issued a general consent for disposals of landunder section 123 for less than best consideration. This allows a localauthority to dispose of land for less than best consideration if it considers thatthe disposal will contribute to the promotion or improvement of the economic,social or environmental well-being of its area and the extent of the undervalueis no more than £2m.

6.3 Solicitors would be instructed to deal with the surrender and lease renewal.

7. RISK MANAGEMENT

7.1 No risks are envisaged.

8. POTENTIAL IMPACTS

9. TIMETABLE FOR IMPLEMENTATION

Table: 1 Implementation timetable

Date DetailsDec 2019 Cabinet Approval

Jan 2020 Instruct solicitorsMarch 2020 Complete new lease

10.APPENDICES

Appendix A – Site Plan for Ascot District Day Centre, Bagshot Road,Sunningdale, SL5 9PD

11. BACKGROUND DOCUMENTS

N/A

12. CONSULTATION (MANDATORY)

Name ofconsultee

Post held Datesent

Datereturned

Cllr Johnson Leader of the Council,Maidenhead Regeneration andMaidenhead (includesCommunications and Property)

Duncan Sharkey Managing DirectorRussell O’Keefe Executive DirectorAndy Jeffs Executive Director

Section 151 OfficerElaine Browne Interim Head of Law and

GovernanceNikki Craig Head of HR and Corporate

ProjectsLouisa Dean CommunicationsKevin McDaniel Director of Children’s Services

Hilary Hall Deputy Director ofCommissioning and StrategyOther e.g. external

REPORT HISTORY

Decision type:Key decision Urgent

Urgency item?Yes

This proposal representsgood asset managementof the Council’s property atthe same time asprotecting a vauablecharitable service for theelderly.

To Follow item?

Report Author: Andrew Caldwell – Asset Manager Commercial Property